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Management and Financial Accounts

Business, Cashflow, Crisis, Economy, Finance, Input, Output, Starting, leader, network Add comments

Met an interesting person yesterday – which sparked a debate about types of accountants. Not whether they are interesting or boring (!), but whether they are financial or management accountants.

Financial Accountants produce the raw data – they are the unsung heroes and heroines who make sure your numbers are produced on a timely and accurate basis, that debts are called in, and creditors appeased.

Management Accountants are a different breed. They look at the data and ask the “difficult questions”. Such as “Is this a good number?”, “Have we achieved what we thought we would, and if not, why not?”, and perhaps the most important question, “What is the implication of this data to our financial future?”.

Most businesses have Financial Accountants (for example the bookkeeper). I believe businesses need both kinds of accountant, and that it is very hard to find someone who can be both.

Who is asking the difficult questions in your organisation?

Tags: accountant, accounts, Business, Cash, financial, Management


December 2nd, 2008 |

Tags: accountant, accounts, Business, Cash, financial, Management


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